CSF(SH:600654)2020-10-30 16:00Financial Performance - Total assets decreased by 14.20% to CNY 4,648,036,829.87 compared to the end of the previous year[17]. - Net assets attributable to shareholders decreased by 87.09% to CNY 40,437,206.15 due to losses incurred during the period[19]. - Operating income increased by 10.06% to CNY 2,123,237,371.22 compared to the same period last year, driven by the disposal of investment properties[19]. - Net profit attributable to shareholders improved by 10.85% to CNY -256,904,739.59, influenced by pandemic subsidies and debt waivers from acquired companies[19]. - Net cash flow from operating activities decreased by 314.93% to CNY -49,071,030.18, primarily due to reduced sales collections and a decline in overseas security services[19]. - Basic earnings per share increased by 9.09% to CNY -0.20, reflecting the impact of pandemic subsidies and debt waivers[19]. - The weighted average return on net assets increased by 269.56 percentage points to -138.95% due to a decrease in net assets[19]. - Non-operating income and expenses totaled CNY -23,842,411.57 for the period, with significant contributions from government subsidies and debt restructuring gains[19]. - The company reported a net loss for the period increased to CNY -2,472,137,573.71 from CNY -2,215,232,834.12, indicating a worsening of approximately 11.6%[73]. - The net profit for Q3 2020 showed a loss of ¥181,111,732.42, worsening from a loss of ¥35,323,762.73 in Q3 2019[86]. - The comprehensive income total for Q3 2020 was -113,057,635.21 RMB, compared to -83,626,482.57 RMB in the previous year, showing a worsening financial position[100]. Shareholder Information - The company had a total of 65,129 shareholders at the end of the reporting period[22]. - The largest shareholder, Shenzhen Zhongheng Huizhi Investment Co., Ltd., held 41.15% of the shares, with a total of 527,977,838 shares frozen[22]. - The actual controller, Mr. Tu Guoshen, and his concerted actors hold a total of 533,877,223 shares, accounting for 41.61% of the total share capital of the company[35]. - The shares held by the controlling shareholder, Zhongheng Huizhi, have been judicially frozen, with 527,977,838 shares frozen, representing 98.89% of their total holdings[35]. - Zhongheng Huizhi's shares are subject to high pledge ratios and risks of further freezing or disposal due to ongoing litigation[35]. - The company is actively communicating with Zhongheng Huizhi to resolve the issues related to share freezing[35]. Asset and Liability Management - The company's total assets decreased by 88.14% in trading financial assets, dropping from ¥51,255,000 to ¥6,080,000 due to reduced purchases of financial products[26]. - Accounts receivable increased by 801.85%, rising from ¥552,608.59 to ¥4,983,695.33, primarily due to an increase in settlement of accounts receivable[26]. - The company disposed of real estate, resulting in a 65.74% decrease in investment properties, from ¥557,768,705.00 to ¥191,077,431.89[26]. - Long-term borrowings increased by 78.35%, rising from ¥354,825,833.98 to ¥632,817,270.73, due to new borrowings during the period[28]. - The company's total liabilities decreased to CNY 4,607,599,623.72 from CNY 5,103,805,780.90, representing a decrease of about 9.7%[73]. - The company's current liabilities totaled CNY 3,840,827,320.63, down from CNY 4,216,623,103.58 at the end of 2019, indicating a reduction of about 8.9%[73]. Cash Flow Analysis - The cash flow from operating activities decreased by 31.05%, from ¥1,005,301,311.43 to ¥693,186,160.25, primarily due to reduced procurement expenditures[30]. - Operating cash inflow for the first three quarters of 2020 was CNY 2,161,254,309.65, a decrease of 11.7% compared to CNY 2,448,396,379.16 in the same period of 2019[101]. - Net cash flow from operating activities was negative CNY 49,071,030.18, compared to a positive CNY 22,831,358.43 in the previous year[104]. - Cash inflow from investment activities was CNY 327,056,819.10, an increase of 27% from CNY 257,647,884.96 in the same period last year[104]. - Cash inflow from financing activities was CNY 569,193,402.77, a decrease of 18.5% from CNY 698,856,493.98 in the previous year[104]. Legal and Compliance Issues - The company has received a total of 1,031 civil lawsuits related to securities false statements, with the total claim amounting to RMB 468,855,240.71[36]. - The company has filed a civil lawsuit to confirm that the shares held in a special account for profit compensation do not belong to Zhongheng Huizhi, aiming to protect the rights of minority shareholders[40]. - The company has committed to not transferring shares for 36 months following the cash subscription of shares, ensuring compliance with regulations[45]. - The company is actively pursuing legal action to confirm that shares held in a special account for profit compensation do not belong to the controlling shareholder, aiming to protect the rights of minority shareholders[55]. Future Plans and Commitments - The company plans to expand its market presence and invest in new joint ventures, as indicated by a cash outflow of ¥30,000,000 for establishing a joint venture[30]. - The company has committed to resolving land ownership issues related to properties leased by its subsidiaries, ensuring no significant adverse impact on future operations[48]. - The company has decided to abandon plans to integrate certain subsidiaries into the listed company structure to avoid potential competition issues[56]. - The controlling shareholder has committed to ensuring that no competitive business activities occur outside of the acquired Thai Weian post-acquisition[52].